Quest Diagnostics Incorporated (DGX)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 549,000 | 686,000 | 315,000 | 872,000 | 1,158,000 |
| Short-term investments | US$ in thousands | — | — | — | 44,000 | 521,000 |
| Total current liabilities | US$ in thousands | 2,169,000 | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 |
| Cash ratio | 0.25 | 0.38 | 0.20 | 0.52 | 0.95 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($549,000K
+ $—K)
÷ $2,169,000K
= 0.25
The cash ratio of Quest Diagnostics Incorporated has shown a declining trend over the years based on the provided data. It was at a relatively strong level of 0.95 on December 31, 2020, indicating that the company had $0.95 in cash for every $1 of current liabilities. However, by December 31, 2021, the cash ratio declined to 0.52, signaling a decrease in the company's ability to cover its short-term obligations with its available cash.
Subsequently, on December 31, 2022, the cash ratio decreased further to 0.20, reflecting a significant reduction in the company's liquidity position. This may raise concerns about its ability to meet immediate financial obligations without relying on external sources of funding.
However, by December 31, 2023, there was a slight improvement in the cash ratio to 0.38, indicating a partial recovery in the liquidity position of Quest Diagnostics. Despite this improvement, the cash ratio remained relatively low compared to previous years.
Lastly, on December 31, 2024, the cash ratio was reported at 0.25, which suggests that the company still has room for improvement in its liquidity management.
Overall, the declining trend in Quest Diagnostics' cash ratio highlights the importance of monitoring its ability to meet short-term obligations with its available cash reserves. Executives and stakeholders may need to assess the effectiveness of the company's cash management strategies and consider taking steps to improve its liquidity position in the future.
Peer comparison
Dec 31, 2024